SKF India reports strong first quarter results

SKF Bearings India Ltd. (a 54%-owned subsidiary of SKF AB, Sweden) reported first quarter 2003 results, with sales and profits both coming in above expectations. First quarter sales were Rs 1.09 billion (USD 23.0 million), up more than 12% from 2002's first quarter sales of Rs 974 million ($20.6 million). Net profit, however, went up by more than 193%, to Rs 50 million from Rs 17 million. SKF credited the leveraged jump in profits to its ongoing dual focus on cost-cutting initiatives and the introduction of new, higher-margin, higher value-added products. SKF is the dominant bearing vendor in the Indian marketplace, controlling at least 30% of the country's total market and several specific sectors such as the fast-growing two-wheeler market. 60% of its sales are to original equipment manufacturers and 40% to the more profitable replacement parts aftermarket. The Bombay Stock Exchange (BSE) reported SKF shares have risen more than 7% lately, from Rs 42 to over Rs 45.